PEP (PEP)
Politically exposed person: someone in a prominent public function, or their family and close associates, requiring enhanced due diligence.
Overview
PEPs pose higher corruption risk. Most AML regimes require firms to identify PEPs, obtain senior approval for the relationship, establish source of wealth and monitor more closely.
It connects most directly to Customer due diligence and Sanctions screening.
Check the official sources below for legal scope, applicable dates and exceptions. This entry is an explanatory reference, not legal advice.
Why it matters
Missing a PEP is a common and costly AML failing.
Who it affects
Financial institutions and other obliged entities.
Where it sits
Ten linked steps connect where you operate to the proof that you complied.
- 01Jurisdiction
- 02Industry
- 03Activity
- 04Authority
- 05Regulation
- 06Requirement
- 07Guidance
- 08Control
- 09Evidence
- 10Enforcement
Connections
The terms most closely tied to PEP. Select one to open it.
What to do about it
- 1Define the owner, frequency, data and pass condition.
- 2Automate the test on source data where you can.
- 3Capture evidence on every run, including exceptions.
- 4Review exceptions and failures and record the decision.
From requirement to evidence.
PEP screening is a tested control with evidence on every match decision.
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